Filing Flows › Balchem (BCPC) › Takeover & LBO
Is Balchem (BCPC) a takeover target?
A leveraged buyout at today's price plus 30% ($227.80 a share) would return about 3% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $131.56 a share (−25% against today's $175.23). Historically 3.9% of companies with its figures were bought within a year (0.78× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $227.80 | today's $175.23 plus 30% |
| × shares | 32.0 million | |
| = Equity value | $7.3B | |
| + Debt refinanced | $0 | |
| − Cash | $66.3M | |
| = Enterprise value | $7.2B | 26.0× EBITDA of $278M |
| Fees | $145M | 2% of the price |
| New debt | $1.5B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $5.8B | 79% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $1.2B | $301M | $117M | $148M | $1.4B |
| Year 2 | $1.3B | $321M | $106M | $175M | $1.2B |
| Year 3 | $1.3B | $339M | $92.4M | $202M | $1.0B |
| Year 4 | $1.4B | $353M | $76.9M | $227M | $778M |
| Year 5 | $1.4B | $364M | $59.5M | $252M | $527M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 19.9× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $7.2B | |
| − Debt left | $527M | |
| = Buyer's equity | $6.7B | |
| Money multiple | 1.15× | on $5.8B put in |
| Buyer's yearly return (IRR) | 2.8% |
Price against return
What the buyer makes at other premiums over today's $175.23; the IRR reaches 20% at $131.56 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $192.75 | 7.4% |
| 20% | $210.28 | 5.0% |
| 30% | $227.80 | 2.8% |
| 40% | $245.32 | 0.9% |
| 50% | $262.84 | −0.8% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $1.1B | |
| EBITDA, last 12 months | $278M | 25.1% of revenue |
| Depreciation and amortization | $48.8M | |
| Debt | $0 | |
| Cash | $66.3M | |
| Share price | $175.23 | on Oct 23, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 8.0% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 20% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Balchem would cost about $232.18 a share, $7.4B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $210.28 | $6.7B |
| Median | 32.5% | $232.18 | $7.4B |
| High end (a quarter paid more) | 51.8% | $266.00 | $8.5B |
The odds, from history
Historically 3.9% of companies with its figures were bought within a year (0.78× the average). Its figures put it in decile 4 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
Balchem's latest quarter
Balchem, Q3 2026: revenue $291M (+9% year over year), operating margin 21.5%, net earnings $46.7M, operating cash flow $69.8M. The chart follows the revenue to costs, profit and cash.
Questions
Is Balchem being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Balchem?
A leveraged buyout at today's price plus 30% ($227.80 a share) would return about 3% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $131.56 a share (−25% against today's $175.23).
What would a takeover of Balchem cost?
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Balchem would cost about $232.18 a share, $7.4B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.